Payment Maximums And Cost Limitations

(1) Application period limits. (a) Total. In the first year of administering the program, the department will limit the total disbursement of program funds to 50 percent of the fund’s balance. For any application period after the first year, the department may commit the fund’s balance in full, as it is calculated at the beginning of the application period less any amounts for previous program offers committed but which are still outstanding from the prior year’s application period. These limits on expenditures per application period shall apply inclusive of both easement purchase funds and payment of ancillary enrollment. Notwithstanding these limits on expenditures, commitments may be made only for applications that meet all eligibility and scoring requirements set forth in this chapter, including the minimum scoring threshold established in 0080-01-04-.04(3). (b) Easement purchases. For any application period, the department shall limit the total funds available for easement purchases to 92 percent of the application period limit established under subparagraph (a). (c) Ancillary costs. For any application period, the department shall limit the total funds available for support of ancillary enrollment costs to eight percent of the application period limit established under subparagraph (a). (2) Individual application limits. (a) Easement purchase. 1. The department shall limit the funds available for easement purchase per application to 30 percent of the total easement purchase limit established under subparagraph (1)(b). 2. The department shall further limit easement purchase funding per application based on the lowest valuation of each easement (i.e. among the estimated value indicated in the application, the appraised value submitted under contract, and any STREAM evaluation under appraisal review or re-appraisal, etc.), less any percentage points of the easement value that owners indicated in the application a willingness to donate and less any matching or other funds the holder represents in writing to the department as applicable to the easement purchase. 3. Provided that payment maximums under this subparagraph are followed, the department may offer up to 100 percent of the funds necessary to purchase an easement. 4. Notwithstanding the department’s payment of funds for purchase of an easement, nothing in this chapter may be construed to limit parcel owners’ and easement holders’ right to contract, provided it conforms with requirements of the Act, including but not limited to the manner or schedule by which purchase price funds are distributed to owners and establishment of easement restrictions on the parcel that are more restrictive than required by the program. (b) Ancillary costs. FARMLAND PRESERVATION CHAPTER 0080-01-04 1. Eligibility. Other than funds necessary to purchase the easement, only the following items are eligible for funding under the program: (i) The following documents submitted under contract with the department for enrollment of the easement: (I) Appraisal; (II) Boundary survey; (III) Baseline documentation report detailing current conditions of the parcel prior to recording the easement; (IV) Subsurface interests remoteness study; and, (V) Title insurance. (ii) Multi-resource management plan prepared by an accredited forester, if produced within one year prior to application for the program; and, (iii) One-time, upfront stewardship fee payable to the holder for costs associated with maintenance and enforcement of easement restrictions, including but not limited to ongoing monitoring, inspection, enforcement, conservation defense insurance, and legal fees. 2. All ancillary costs are subject to payment only once per item and, except as to calculation of the stewardship fee, only in the amount as reflected on the closing statement for purchase of the easement or upon valid receipt submitted to the department directly by the vendor providing the service. 3. Cost limitations. (i) The department shall limit the funds available for ancillary costs per application to the lesser of the following: (I) Total ancillary costs limit established under subparagraph (1)(c) divided by the number of applications selected for funding during the application period, rounded to the nearest dollar; or (II) One-fifteenth of the total ancillary costs limit established under subparagraph (1)(c), rounded to the nearest dollar. (ii) Provided that payment maximums under this subparagraph are followed, the department may offer up to 100 percent of ancillary costs for easement enrollment. (iii) The department shall limit payment of stewardship fees to ten percent of the per application ancillary cost limitation established per application period under subpart (i) of this part. (3) Example. Inaugural Application Period Funding Breakdown $25M Fund Balance at 50% Disbursement Total Application Period Limits FARMLAND PRESERVATION CHAPTER 0080-01-04 Total Period Funding $12,500,000 Easement Purchases $11,500,000 Ancillary Costs (total) $1,000,000 Per Individual Application Limits # of Selected Applications Easement Purchase Total Ancillary Costs Limit, per Application Stewardship Fee Other Ancillary Costs 1–15 $3,450,000 $66,667 $6,667 $60,000 $3,450,000 $62,500 $6,250 $56,250 $3,450,000 $58,824 $5,882 $52,942 $3,450,000 $55,556 $5,556 $50,000 $3,450,000 $52,632 $5,263 $47,369 $3,450,000 $50,000 $5,000 $45,000